Brexit and Trade Tension Impacts on Gold

Continuing Brexit and Trade Uncertainty May Boost Gold. Two major sources of uncertainty, Brexit and heightened trade tensions, look increasingly likely to persist at least into late 2019. The latest Brexit delay until October 31 is mostly good news for the British pound (GBP) because it reduces the risk of a no-deal Brexit. It does mean, however, that heightened volatility will continue until at least this fall. President Trump’s latest threat to impose tariffs on Europe is another sign that trade tensions, despite continued optimism on U.S.-China negotiations, are likely to persist through 2020.